In the economically poor, but spectacularly beautiful island nation of the Maldives, the challenge is how to capitalize on the growing international tourist trade without doing harm to the delicate environment that attracts visitors in the first place. Villa Hotels has partnered with IFC and another IFC client, Taj Maldives, on a project to recover and protect coral reefs and lagoons that surround its resort properties. IFC also financed an energy savings project for the company, which included installation of solar water heating and heat recovery systems. The goal of the energy project: a 10-20 percent reduction in energy consumption, with an estimated annual savings of $65,000. In addition, IFC’s investment supported Villa’s trading arm, by creating infrastructure and enabling the company to expand its distribution network so that residents of outlying atolls have increased access to critical goods such as cement, LPG and diesel fuel.
IFC role and development impact:
- $15 million in long term financing, plus guidance on improving corporate governance standards
- Advisory services in support of coral reef protection project
- Improved environmental profile, decreased reliance on non-renewable power sources
- Enhanced growth of tourism sector: helps branding for visitors in search of eco-tourism, exotic destinations
- Extends fuel distribution network to remote islands
